Advertising - Ethiopia | Statista Market Forecast

Ad spending in the Advertising market in Ethiopia is forecasted to reach US$146.30m in 2024.
The largest market is TV & Video Advertising with a market volume of US$39.17m in 2024.
When compared globally, the United States is expected to lead in ad spending with US$425.90bn in 2024.
In Ethiopia's Advertising market, 57% of total ad spending is projected to come from digital sources in 2030.
The average ad spending per capita in the TV & Video Advertising market is estimated to be US$0.30 in 2024.
Moreover, Advertising market of the 56% revenue in Ethiopia will be generated through programmatic advertising in 2030.
Ethiopia's advertising market is witnessing a shift towards digital platforms, with increased investments in online and social media advertising strategies.

Definition:
Advertising spending refers to expenses for promotional strategies with which brands or businesses purchase advertising space to promote products or services. The primary purposes of advertising include creating awareness, generating interest, and persuading consumers to take a particular action such as purchasing a product, visiting a website, or supporting brands. Advertisers use advertising to reach their target audience while media companies and advertising agencies use it as a source of income.

Structure:
The advertising spending consists of two main channels (traditional advertising and digital advertising). Traditional Advertising refers to above-the-line media that delivers commercial messages to broad audiences. This includes mass media such as traditional TV, traditional radio, printed newspapers, printed magazines, and traditional out-of-home (OOH) advertising formats. Digital Advertising uses the internet to deliver marketing messages to internet users in various forms. This includes digital video, search engine, social media, digital out-of-home, digital banner, digital audio, digital classifieds, and influencer advertising.

Additional information:
The market comprises advertising spending, share by advertising channel, users, average revenue per user, advertising share by industry, ad spending by medium, and digital ad spending share (programmatic and non-programmatic). The market only displays B2B spending and users for the above-mentioned channels. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Additional definitions for each market can be found on the respective pages. For more information on the data displayed, use the info button right next to the boxes.

Traditional advertising such as non-digital ads for TV and radio, as well as out-of-home advertising and print advertising
Digital advertising such as online ads for video, banner, audio, classifieds, and search engines, as well as digital out-of-home, social media, in-app, and connected TV advertising
Influencer advertising

Sponsorships/events and promotion
Product placement
Commission-based affiliate systems

The Advertising market in Ethiopia has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Ethiopia have shifted towards digital advertising channels, as internet penetration rates have increased across the country. Consumers are increasingly accessing information and entertainment through their smartphones, leading to a higher demand for online advertising. Additionally, there is a growing interest in targeted and personalized advertising, as consumers seek more relevant and engaging content. This has prompted advertisers to invest in digital platforms and data-driven advertising strategies to reach their target audience effectively. Trends in the advertising market in Ethiopia reflect global patterns, with an increasing emphasis on influencer marketing and social media advertising. Influencers, particularly those with a strong social media following, have become powerful marketing tools for brands looking to connect with their target audience. Additionally, social media platforms such as Facebook and Instagram offer cost-effective advertising options that allow businesses to reach a wide audience. As a result, advertisers in Ethiopia are allocating a significant portion of their budgets to influencer and social media marketing. Local special circumstances also contribute to the development of the advertising market in Ethiopia. The country's young and growing population presents a lucrative market for advertisers, as youth are often early adopters of new products and services. Furthermore, Ethiopia's rapid urbanization and increasing middle-class population have created new opportunities for brands to target urban consumers with disposable income. Advertisers are capitalizing on these trends by developing localized campaigns that resonate with the aspirations and values of Ethiopian consumers. Underlying macroeconomic factors, such as Ethiopia's strong economic growth and increasing foreign direct investment, have also played a role in the development of the advertising market. As the economy expands, businesses are looking to promote their products and services to a wider audience, leading to increased advertising spending. Additionally, the government's focus on infrastructure development and investment in sectors such as manufacturing and tourism has attracted multinational companies to the country, further driving demand for advertising services. In conclusion, the Advertising market in Ethiopia is experiencing significant growth due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Advertisers are adapting to the digital age by investing in online advertising channels and data-driven strategies. Influencer marketing and social media advertising are also gaining traction. Ethiopia's young population, urbanization, and strong economic growth provide a fertile ground for advertisers to connect with consumers and promote their products and services.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for traditional and digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, consumer spending, and digital consumer spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year. In some cases, the data is updated on an ad-hoc basis (e.g., when new relevant data has been released or significant changes within the market have an impact on the projected development).

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

All advertising markets across the globe win, yet some win more than others. Ad spending worldwide reached almost 733 billion U.S. dollars in 2023, up less than three percent from the previous year. For comparison, in 2022, Switzerland ranked 20th among the leading economies by gross domestic product (GDP) with a result exceeding 800 billion dollars. Whereas global ad revenues concentrate in areas with either large populations or high purchase power – preferably both – their evolution depends on a larger set of indicators. It was forecast that, in 2024, South Asia will be the world's fastest-growing ad market, and the only out of nine with a double-digit increase rate: 12.1 percent. The second-placed region, comprising the United States and Canada, was projected to see its ad expenditure rise 7.6 percent.